The 529 plan is typically owned by an adult, for the benefit of a child's future college education. These are state-sponsored education savings programs.
A 529 plan grows tax-deferred and the earnings come out tax-free, as long as they're put toward qualified education expenses. There are typically high contribution limits and a 10% penalty, as well as taxes on earnings if you use earnings distributions on things other than qualified education expenses. Each state's 529 plans have their own requirements, benefits, and tax advantages.
A 529 plan owner generally does not lose control of the assets upon the child's age of majority as is the case with UTMAs. Also, a 529 owner can usually change the 529 beneficiary to other children. We'll help you navigate specific 529 plan requirements, benefits, and tax advantages so you select the right 529 for you and your future college student.
A 529 plan is a great way to save for your child or grandchild's college education while taking advantage of potential tax benefits.
Anyone with a child or grandchild, who will have to pay for college someday, as well as anyone who wants to save for his or her own college expenses.
Our financial advisors can help you with 529 plans and determine if they can fit into your financial plan.Let's Talk
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